Are provisions requiring Itan franchisees to consent to a limitation of claims within one year enforceable in North Dakota?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
Provisions requiring you to consent to a limitation of claims within one year have been determined to be unfair, unjust and inequitable within the intent of Section 51-19-09 of the North Dakota Franchise Investment Law.
Accordingly, any such provision is modified to read that the statute of limitations under North Dakota Law will apply.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, provisions requiring franchisees to consent to a limitation of claims within one year have been determined to be unfair, unjust, and inequitable within the intent of Section 51-19-09 of the North Dakota Franchise Investment Law. This means that such provisions are generally not enforceable in North Dakota.
Instead of the one-year limitation, the statute of limitations under North Dakota Law will apply. This modification ensures that Itan franchisees in North Dakota are not unfairly restricted in the time they have to bring a claim.
This protection is specific to North Dakota due to its franchise investment laws. Prospective Itan franchisees in North Dakota should be aware of this modification, as it provides more legal recourse compared to the standard franchise agreement.